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It took "Herculean investigative efforts" to identify $5.5 billion in cash

Published on

January 17, 2023
Read Time:2 Minute, 11 Second

The debtors behind FTX have recognized $5.5 billion in money however reported a “important scarcity of digital belongings” on the bankrupt crypto alternate and its US arm.

In a Jan. 17 announcement, FTX said It had recognized $1.7 billion in money, $3.5 billion in crypto belongings and $0.3 billion in securities after the corporate filed for Chapter 11 chapter in November. Debtors added that they recognized roughly $1.6 billion in digital belongings associated to FTX.com -- together with roughly $426 million owned by the Securities Fee of The Bahamas -- and $181 million in Associated to FTX US.

"We're making necessary progress in our efforts to maximise restoration and it has taken a Herculean investigative effort by our staff to uncover this preliminary data," stated John Ray, CEO of FTX. “We ask our stakeholders to know that this data is preliminary and topic to vary. We'll present further data as quickly as we're in a position."

Sharing the press launch simply issued by the FTX debtors: https://t.co/fcSs36nFmq

– FTX (@FTX_Official) January 17, 2023

The debtors added that of the $1.6 billion related to FTX.com, they managed $742 million in chilly storage belongings and had an extra $121 million out there pending the switch. Debtors held $88 million in chilly storage from FTX US with $3 million excellent.

FTX's chapter proceedings, at present pending within the District of Delaware, revealed in November that the corporate owed greater than $3 billion to its prime 50 collectors — there could also be greater than 1,000,000 collectors with claims on belongings on the crypto alternate . January courtroom instances indicated that FTX had "recovered $5 billion in money and liquid cryptocurrencies," however the firm may nonetheless have as a lot as $8.8 billion in complete liabilities.

"Primarily based on present estimates of the quantity of digital belongings related to exchanges FTX.com and FTX US as of the submitting date, there's a important scarcity of digital belongings on each exchanges," the debtors stated.

Associated: Former FTX US President slams 'unsafe' SBF in 49-part Twitter thread

Former FTX chief government Sam Bankman-Fried, who printed a “preliminary overview” of the crypto alternate’s chapter on Jan. 12, claimed FTX US is “totally solvent” and in a position to heal its customers. He added that by the point FTX Worldwide ought to make a "reboot," it may very well be potential for the alternate to reimburse shoppers with present belongings. Bankman-Fried faces eight legal prices within the FTX case, together with allegations of marketing campaign finance violations and wire fraud.



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Azeez Mustafa
Azeez began his FinTech career path in 2008 after growing interest and intrigue about market wizards and how they managed to become victorious on the battlefield of the financial world. After a decade of learning, reading and training the ins and outs of the industry, he’s now a sought after trading professional, technical/currency analyst and funds manager – as well as an author.
Last Updated : January 17, 2023
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